<PAGE>
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                       SECURITIES AND EXCHANGE COMMISSION
 
                             WASHINGTON, D.C. 20549
 
                            ------------------------
 
                                   FORM 10-Q
 
/X/      Quarterly report pursuant to Section 13 or 15(d) of the
         Securities Exchange Act of 1934
         For the quarterly period ended March 31, 1999.
 
/ /      Transition report pursuant to Section 13 or 15(d) of the
         Securities Exchange Act of 1934
         For the transition period from --------- to ---------
 
                        COMMISSION FILE NUMBER: 0-19815
 
                            ------------------------
 
                             CAREMATRIX CORPORATION
 
             (Exact name of Registrant as specified in its charter)
 
                  DELAWARE                             04-3069586
      (State of other jurisdiction of        (I.R.S. Employer Identification
       incorporation or organization)                     No.)
 
                      197 FIRST AVENUE, NEEDHAM, MA 02494
              (Address of principal executive offices) (Zip Code)
 
                                 (781) 433-1000
              (Registrant's telephone number, including area code)
 
                         ------------------------------
 
    Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes /X/
 
    Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
 
<TABLE>
<CAPTION>
                                       OUTSTANDING AT MAY 11,
               CLASS                            1999
-----------------------------------  --------------------------
<S>                                  <C>
Common Stock, $.05 par value               18,029,197 shares
</TABLE>
 
---------------------------------------------------------
---------------------------------------------------------
<PAGE>
                             CAREMATRIX CORPORATION
 
                               TABLE OF CONTENTS
 
                         PART I--FINANCIAL INFORMATION
 
<TABLE>
<CAPTION>
                                                                                                                PAGE
                                                                                                                -----
<S>                                                                                                          <C>
 
FINANCIAL STATEMENTS
 
  Consolidated Balance Sheets as of March 31, 1999 and December 31, 1998...................................           3
 
  Consolidated Statements of Earnings for the three months ended March 31, 1999 and March 31, 1998.........           4
 
  Consolidated Statements of Cash Flows for the three months ended March 31, 1999 and March 31, 1998.......           5
 
  Notes to Consolidated Financial Statements...............................................................           6
 
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS......................           8
 
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.................................................          12
 
                                               PART II--OTHER INFORMATION
 
ITEM 1:  LEGAL PROCEEDINGS.................................................................................          13
 
ITEM 2:  CHANGES IN SECURITIES.............................................................................          13
 
ITEM 5:  OTHER INFORMATION.................................................................................          13
 
ITEM 6:  EXHIBITS AND REPORTS ON FORM 8-K..................................................................          13
</TABLE>
 
                                       2
<PAGE>
                             CAREMATRIX CORPORATION
 
                          CONSOLIDATED BALANCE SHEETS
                   AS OF MARCH 31, 1999 AND DECEMBER 31, 1998
 
<TABLE>
<CAPTION>
                                                                                    DECEMBER 31,
                                                              MARCH 31, 1999            1998
                                                              --------------       ---------------
                                                               (UNAUDITED)
<S>                                                           <C>                  <C>
ASSETS
Current assets:
  Cash and cash equivalents.................................   $  14,985,246          $28,217,373
  Restricted cash...........................................      17,566,399           22,305,371
  Receivables:
    Accounts receivable, net................................      29,271,571           25,334,127
    Accounts receivable-related party.......................      24,613,110           21,662,515
  Prepaid expenses and other current assets.................       6,143,369            4,875,075
                                                              --------------       ---------------
        Total current assets................................      92,579,695          102,394,461
Lease acquisition costs, net................................      16,249,792           15,792,315
Property and equipment, net.................................     163,650,408          147,938,997
Other long-term assets, net.................................      57,530,773           41,023,981
Goodwill, net...............................................      42,098,289           42,496,693
                                                              --------------       ---------------
        Total assets........................................   $ 372,108,957          $349,646,447
                                                              --------------       ---------------
                                                              --------------       ---------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Current portion of long-term debt.........................   $     989,032          $   848,600
  Accounts payable..........................................      10,294,646            9,315,591
  Accrued compensation and benefits.........................       3,420,837            2,262,161
  Accrued liabilities.......................................      12,461,262           14,800,794
  Other current liabilities.................................       1,495,133            1,246,007
                                                              --------------       ---------------
        Total current liabilities...........................      28,660,910           28,473,153
Mortgages and notes payable.................................      61,028,441           43,029,548
Borrowings under line of credit.............................      20,863,687           20,863,687
Convertible subordinated notes..............................     115,000,000          115,000,000
Other long-term liabilities.................................       7,562,243            7,859,818
 
Commitments and contingencies
 
Shareholders' equity........................................     138,993,676          134,420,241
                                                              --------------       ---------------
        Total liabilities and shareholders' equity..........   $ 372,108,957          $349,646,447
                                                              --------------       ---------------
                                                              --------------       ---------------
</TABLE>
 
    The accompanying notes are an integral part of the financial statements.
 
                                       3
<PAGE>
                             CAREMATRIX CORPORATION
 
                CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
          FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND MARCH 31, 1998
 
<TABLE>
<CAPTION>
                                                                                         THREE MONTHS ENDED
                                                                                   ------------------------------
<S>                                                                                <C>             <C>
                                                                                   MARCH 31, 1999  MARCH 31, 1998
                                                                                   --------------  --------------
Revenues:
  Resident operations............................................................   $ 38,400,412    $ 21,161,980
  Resident operations--related party.............................................      5,881,700       2,586,386
  Development fee income.........................................................        486,504         974,202
  Development fee income--related party..........................................      5,949,218       4,923,135
                                                                                   --------------  --------------
        Total revenue............................................................     50,717,834      29,645,703
                                                                                   --------------  --------------
Expenses:
  Facility operating expenses....................................................     26,326,830      15,466,910
  Facility lease expense.........................................................        841,099         582,574
  Facility lease expense--related party..........................................      4,401,845       3,117,293
  General and administrative.....................................................      5,174,785       4,464,136
  Depreciation and amortization..................................................      2,172,145         735,458
                                                                                   --------------  --------------
        Total expenses...........................................................     38,916,704      24,366,371
                                                                                   --------------  --------------
Earnings from operations.........................................................     11,801,130       5,279,332
 
Other income (expense):
  Interest income--related party.................................................        699,821         341,413
  Interest and other income......................................................        762,802       1,987,529
  Interest expense...............................................................     (3,515,544)     (1,838,128)
                                                                                   --------------  --------------
        Total other income (expense).............................................     (2,052,921)        490,814
                                                                                   --------------  --------------
 
Earnings before income taxes and preferred dividends.............................      9,748,209       5,770,146
Income taxes.....................................................................      3,850,543       2,400,381
                                                                                   --------------  --------------
Earnings before preferred dividends..............................................      5,897,666       3,369,765
Preferred dividends..............................................................          1,825           4,575
                                                                                   --------------  --------------
Net earnings.....................................................................   $  5,895,841    $  3,365,190
                                                                                   --------------  --------------
                                                                                   --------------  --------------
 
Basic shares outstanding.........................................................     18,012,159      17,377,463
                                                                                   --------------  --------------
                                                                                   --------------  --------------
Basic earnings per share.........................................................   $       0.33    $       0.19
                                                                                   --------------  --------------
                                                                                   --------------  --------------
 
Diluted shares outstanding.......................................................     22,383,985      18,013,269
                                                                                   --------------  --------------
                                                                                   --------------  --------------
Diluted earnings per share.......................................................   $       0.32    $       0.19
                                                                                   --------------  --------------
                                                                                   --------------  --------------
</TABLE>
 
    The accompanying notes are an integral part of the financial statements.
 
                                       4
<PAGE>
                             CAREMATRIX CORPORATION
 
               CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
          FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND MARCH 31, 1998
 
<TABLE>
<CAPTION>
                                                                                         THREE MONTHS ENDED
                                                                                   ------------------------------
<S>                                                                                <C>             <C>
                                                                                   MARCH 31, 1999  MARCH 31, 1998
                                                                                   --------------  --------------
Net earnings.....................................................................   $  5,895,841   $    3,365,190
Noncash items included in net earnings:
  Depreciation of fixed assets...................................................      1,164,677          298,773
  Amortization of intangible assets..............................................        776,492          330,018
  Amortization of lease acquisition costs........................................        230,976          106,667
  Increase in accounts receivable................................................     (6,799,606)      (3,559,346)
  Changes in current assets......................................................       (399,680)        (401,748)
  Increase in current liabilities................................................       (403,083)         682,165
  Other noncash items............................................................             --           28,350
                                                                                   --------------  --------------
        Net cash provided by operating activities................................        465,617          850,069
                                                                                   --------------  --------------
Cash flows from investing activities:
  Additions to property and equipment, net.......................................     (2,721,805)        (701,954)
  Purchase of SeniorCare Group, Ltd. facility....................................     (5,780,000)              --
  Increase in other long-term assets.............................................    (15,408,837)      (4,119,013)
  Change in restricted cash......................................................      4,738,972      (13,824,014)
  Lease acquisition costs........................................................       (688,453)      (3,633,358)
                                                                                   --------------  --------------
        Net cash used by investing activities....................................    (19,860,123)     (22,278,339)
                                                                                   --------------  --------------
 
Cash flows from financing activities:
  Exercise of stock options and warrants.........................................        199,650        2,663,184
  Repurchase of common shares....................................................     (1,513,992)              --
  Net proceeds from mortgage refinancing.........................................      8,736,198               --
  Repayment of debt, net.........................................................     (1,259,477)        (267,590)
  Other, net.....................................................................             --           42,048
                                                                                   --------------  --------------
        Net cash provided by financing activities................................      6,162,379        2,437,642
                                                                                   --------------  --------------
 
Decrease in cash and cash equivalents............................................    (13,232,127)     (18,990,628)
Cash and cash equivalents, beginning of period...................................     28,217,373      152,619,435
                                                                                   --------------  --------------
Cash and cash equivalents, end of period.........................................   $ 14,985,246   $  133,628,807
                                                                                   --------------  --------------
                                                                                   --------------  --------------
 
Other noncash items:
  Conversion of convertible debentures into equity...............................                  $    2,000,000
                                                                                                   --------------
                                                                                                   --------------
</TABLE>
 
    The accompanying notes are an integral part of the financial statements.
 
                                       5
<PAGE>
                             CAREMATRIX CORPORATION
 
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
1. BASIS OF PRESENTATION
 
    CareMatrix Corporation (the "Company") develops, manages and operates
assisted living facilities and various other health care facilities.
 
    The accompanying interim unaudited financial statements have been prepared
by the Company pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been omitted pursuant to such regulations. The
financial statements reflect all adjustments and disclosures which are, in the
opinion of management, necessary for a fair presentation of the financial
position and results of operations for the periods presented. All such
adjustments are of a normal recurring nature. The interim financial statements
should be read in conjunction with the Company's Annual Report on Form 10-K for
the year ended December 31, 1998, for additional disclosures. The results of
operations for the interim periods presented are not necessarily indicative of
the results that may be achieved for the full year. Certain reclassifications
have been made on the prior year's financial statements to conform to the
current year's presentations.
 
PRINCIPLES OF CONSOLIDATION
 
    The consolidated financial statements include the accounts of the Company
and its subsidiaries. All significant intercompany balances and transactions
have been eliminated in consolidation.
 
2. RESTRICTED CASH
 
    CASH COLLATERAL.  Under the terms of an agreement to fix interest rates on
future leases with Chancellor Senior Housing Group, Inc., the Company is
required to maintain specified levels of cash collateral with a financial
institution. Interest on the funds held accrues to the benefit of the Company.
At March 31, 1999, the amount held as collateral was approximately $14.0
million. At December 31, 1998, the amount held was $19.1 million.
 
3. RELATED PARTY TRANSACTIONS
 
    As used herein, a "Chancellor Entity" is Chancellor Senior Housing Group,
Inc. (a company primarily owned by Abraham D. Gosman, Chief Executive Officer
and Chairman of the Board of Directors of the Company, and certain members of
the Company's senior management) or a company in which Mr. Gosman and certain
members of the Company's senior management exercise significant control.
 
    During the quarter ended March 31, 1999, the Company recognized revenue of
$5.1 million for marketing and management services provided to various
Chancellor Entities compared to revenue of $12.8 million for the year ended
December 31, 1998.
 
    During the quarter ended March 31, 1999, the Company paid a Chancellor
Entity $2.0 million for development and management rights related to a senior
community in New Jersey. The development rights are being amortized as the
related fees are earned.
 
    During the quarter ended March 31, 1999, the Company paid various Chancellor
Entities and partnerships $9.0 million related to prepaid rent for seven
facilities. The prepaid rent is being amortized over the terms of the related
leases.
 
    The Company purchased two parcels of land from certain Chancellor Entities
for approximately $1.0 million.
 
                                       6
<PAGE>
                             CAREMATRIX CORPORATION
 
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
4. PURCHASE OF A SENIORCARE GROUP, LTD. FACILITY
 
    The Company completed the acquisition of the tenth SeniorCare Group, Ltd.
facility in January 1999 (see Note 3 of Notes to Financial Statements included
in the Company's 1998 Annual Report on Form 10-K for the year ended December 31,
1998). In connection with the acquisition of this facility, the Company recorded
the related fixed assets at their estimated fair market value of $18.5 million
and assumed approximately $8.1 million in debt.
 
5. DEBT REFINANCING
 
    During the quarter ended March 31, 1999, the Company refinanced certain
mortgage debt assumed in the SeniorCare acquisition. The new mortgage has a
principal amount of $16.7 million, bears interest at 30 day LIBOR plus 3% and
matures January 31, 2002. Interest payments are due monthly beginning in March
1999. The proceeds from the loan were used primarily to complete the acquisition
of SeniorCare and to repay the existing mortgage.
 
6. EARNINGS PER SHARE
 
    Earnings per share has been computed in accordance with Statement of
Financial Accounting Standards No. 128, "Earnings per share."
 
<TABLE>
<CAPTION>
                                                                                THREE MONTHS ENDED MARCH 31, 1999
                                                                             ---------------------------------------
<S>                                                                          <C>           <C>           <C>
BASIC EARNINGS PER SHARE                                                       EARNINGS       SHARES      PER SHARE
---------------------------------------------------------------------------  ------------  ------------  -----------
Earnings available to common shareholders..................................  $  5,895,841    18,012,159   $    0.33
  Effect of dilutive securities:
    Stock options and warrants.............................................            --       382,880
    6.25% Convertible Debentures...........................................     1,164,571     3,982,684
    Conversion of preferred stock..........................................         1,774         6,262
                                                                             ------------  ------------       -----
Diluted earnings per share.................................................  $  7,062,186    22,383,985   $    0.32
                                                                             ------------  ------------       -----
                                                                             ------------  ------------       -----
</TABLE>
 
<TABLE>
<CAPTION>
                                                                                THREE MONTHS ENDED MARCH 31, 1998
                                                                             ---------------------------------------
<S>                                                                          <C>           <C>           <C>
BASIC EARNINGS PER SHARE                                                       EARNINGS       SHARES      PER SHARE
---------------------------------------------------------------------------  ------------  ------------  -----------
Earnings available to common shareholders..................................  $  3,365,190    17,377,463   $    0.19
  Effect of dilutive securities:
    Stock options and warrants.............................................            --       564,696
    8.5% convertible debentures............................................        12,961        71,110
                                                                             ------------  ------------       -----
Diluted earnings per share.................................................  $  3,378,151    18,013,269   $    0.19
                                                                             ------------  ------------       -----
                                                                             ------------  ------------       -----
</TABLE>
 
7. REPURCHASE OF COMMON SHARES
 
    In February 1999, the Company announced that its Board of Directors has
authorized a share repurchase program. The Company will offer to purchase up to
one million shares of its outstanding common stock from time to time in open
market transactions. As of March 31, 1999, the Company had repurchased 78,200
shares at an average price of $19.36.
 
8. SUBSEQUENT EVENTS
 
    In April 1999, the Company was approved to be listed on the Nasdaq Stock
Market. The Company's common stock began trading under the symbol "CMDC" on
April 23, 1999.
 
                                       7
<PAGE>
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
 
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
OVERVIEW
 
    The Company is a provider of assisted living services to the elderly. At
March 31, 1999, the Company operated 60 facilities in 18 states with a capacity
of approximately 7,300 residents. Of the facilities, 28 are owned/leased, and 32
are managed. In addition, the Company currently has under development 71
facilities with a capacity of approximately 11,000 residents. The Company
provides assistance with the activities of daily living and other personalized
support services in a residential setting for elderly residents who cannot live
independently but who do not need the level of medical care provided in a
skilled nursing facility. The Company also provides additional specialized care
and services to residents with certain low acuity medical needs and residents
with Alzheimer's disease or other forms of dementia. By offering this full range
of services, the Company is able to accommodate the changing needs of residents
as they age within a facility and develop further physical or cognitive
frailties.
 
    The Company derives its revenues from three primary sources: (i) resident
fees for the delivery of independent and assisted living and other long-term
care services; (ii) management services income for management of and marketing
for facilities; and (iii) fee income from the development and construction of
facilities. Resident fees typically are paid monthly by residents, their
families or other responsible parties. Resident fees and management fees are
recognized as revenues when services are provided. Development fee revenue is
recognized on the percentage of completion basis using the achievement of
specific milestones in the development process.
 
    The Company has made forward-looking statements in this Report (and in
documents that are incorporated by reference) that are subject to risks and
uncertainties. Forward-looking statements include information concerning
possible or future results of operations of CareMatrix. Also, when the Company
uses words such as "believes," "expects," "anticipates" or similar expressions,
it is often, but not always, making forward-looking statements. Stockholders
should note that many factors could affect our future financial results and
could cause such results to differ materially from those expressed in our
forward-looking statements. Those factors include, but are not limited to, the
following:
 
    - risks related to the Company's operating history and available financing;
 
    - risks related to the Company's anticipated growth and acquisition
      strategy;
 
    - risks inherent in the construction and development industry;
 
    - uncertainty about the changing regulatory environment;
 
    - risks related to the Year 2000 problem;
 
    - risks related to competition; and
 
    - risks related to the Company's ability to attract and retain key
      personnel.
 
THE QUARTER ENDED MARCH 31, 1999 COMPARED TO THE QUARTER ENDED MARCH 31, 1998
 
    REVENUES.  Resident operations revenue increased by $20.5 million for the
first quarter of 1999 compared to the same period in 1998. The increase is
comprised principally of revenue from facilities leased or owned for less than
one year, including $7.5 million from seven facilities acquired in the
SeniorCare Group, Ltd. ("SeniorCare") acquisition (see Note 3 of Notes to
Consolidated Financial Statements in the Company's Annual Report on Form 10-K
for the year ended December 31, 1998), and from fees related to management
contracts and other services as a result of the increase in the number of
facilities under construction and in operation.
 
                                       8
<PAGE>
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
 
          OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
 
THE QUARTER ENDED MARCH 31, 1999 COMPARED TO THE QUARTER ENDED MARCH 31, 1998
(CONTINUED)
    Development fee income was $6.4 million in the first quarter of 1999 versus
$5.9 million in the same period in 1998. As a percentage of operating revenue,
development fee income in the first quarter of 1999 decreased to 12.7% from
19.9% in 1998.
 
    FACILITY EXPENSES.  Facility operating expenses were $26.3 million in the
first quarter of 1999 compared to $15.5 million in the same period of 1998, an
increase of $10.8 million. The increase is primarily due to an increase from
operating expenses from facilities leased or owned less than one year.
 
    Facility lease expense was $5.2 million in the first quarter of 1999
compared to $3.7 million in the same period in 1998. The increase of $1.5
million is primarily due to facilities leased less than one year.
 
    GENERAL AND ADMINISTRATIVE.  General and administrative expenses for the
first quarter of 1999 increased to $5.2 million from $4.5 million in the same
period of 1998. As a percentage of operating revenue, general and administrative
expenses in the first quarter of 1999 declined to 10.2% from 15.1% in the first
quarter of 1998. The increase in absolute expense is due primarily to increases
in salary, benefits, travel, and advertising expenses relating to the hiring of
additional regional operational and marketing staff as a result of the Company's
continued growth.
 
    DEPRECIATION AND AMORTIZATION.  Depreciation and amortization for the first
quarter of 1999 increased $1.4 million compared to the same period in 1998. The
increase is due primarily to $1.1 million of depreciation from facilities open
less than one year and $0.3 million from the amortization of other intangible
assets.
 
    INTEREST AND OTHER INCOME AND INTEREST EXPENSE.  Interest income for the
first quarter of 1999 was $1.5 million compared to $2.3 million for the same
period in 1998. The decrease is due to lower average cash balances during 1999
compared to 1998. Interest expense for the first quarter of 1999 increased to
$3.5 million from $1.8 million for the same period in 1998. The increase is
primarily due to interest expense of $1.1 million related to debt assumed in the
SeniorCare acquisition and $0.5 million from borrowings under the line of
credit.
 
    INCOME TAXES.  The Company's effective tax rate during the first quarter of
1999 was 39.5% compared to 41.6% in 1998. The decrease in the effective tax rate
is due to a reduction in the effective state tax rate to 4.5% for 1999 from 6.0%
for 1998.
 
THE QUARTER ENDED MARCH 31, 1998 COMPARED TO THE QUARTER ENDED MARCH 31, 1997
 
    REVENUES.  Resident operations revenue increased by $13.9 million for the
first quarter of 1998 compared to the same period in 1997. The increase is
comprised of $11.6 million from facilities leased for less than one year and
$2.3 million from fees related to new management contracts as a result of the
increase in the number of facilities under construction and in operation.
 
    Development fee income was $5.9 million in the first quarter of 1998 versus
$3.2 million in the same period in 1997. The increase is primarily due to higher
number of projects in development in 1998 compared to the number of projects in
1997.
 
    FACILITY EXPENSES.  Facility expenses for the first quarter of 1998
increased by $11.1 million compared to the same period in 1997. The increase in
facility expenses is comprised of an increase in lease expense of $2.3 million
and an increase in operating expenses of $8.8 million.
 
                                       9
<PAGE>
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
 
          OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
 
THE QUARTER ENDED MARCH 31, 1998 COMPARED TO THE QUARTER ENDED MARCH 31, 1997
(CONTINUED)
    Facility lease expense was $3.7 million in the first quarter of 1998
compared to $1.4 million in the same period in 1997. The increase of $2.3
million is primarily due to facilities leased less than one year.
 
    Facility operating expenses were $15.4 million in the first quarter of 1998
compared to $6.6 million in the same period of 1997, an increase of $8.8
million. The increase is primarily due to $8.3 million of operating expenses
from facilities leased less than one year. Comparable facility operating
expenses increased $0.6 million.
 
    GENERAL AND ADMINISTRATIVE.  General and administrative expenses for the
first quarter of 1998 increased to $4.5 million from $3.6 million in the same
period of 1997. As a percentage of operating revenue, general and administrative
expenses in the first quarter of 1998 declined to 15.1% from 27.9% in the first
quarter of 1997. The increase in expense is primarily due to an increase in
salary and benefits expenses relating to the hiring of additional corporate
staff in anticipation of the Company's growth plans.
 
    DEPRECIATION AND AMORTIZATION.  Depreciation and amortization for the first
quarter of 1998 increased $0.2 million compared to the same period in 1997. The
increase is due primarily to $0.1 million of amortization of debt issuance costs
and $0.1 million of amortization of other intangible assets.
 
    INTEREST INCOME.  Interest income for the first quarter of 1998 was $2.3
million compared to $0.8 million for the same period in 1997. The increase is
primarily due to higher average cash balances due to the issuance in 1997 of
$115.0 million of 6 1/4% Convertible Subordinated Notes (the "Notes").
 
    INTEREST EXPENSE.  Interest expense for the first quarter of 1998 increased
to $1.8 million from $0.3 million for the same period in 1997. The increase is
primarily due to interest expense on the Notes.
 
    INCOME TAXES.  The Company's effective tax rate during the first quarter of
1998 was 41.6% compared to 40.2% in 1997. The increase in the effective tax rate
is due to the increase in the level of income subject to the federal tax rate of
35.0% for 1998, as compared to 34.0% for 1997, and the utilization in 1997 of
certain tax benefits that had been fully reserved in 1996.
 
LIQUIDITY AND CAPITAL RESOURCES
 
    Cash and cash equivalents at March 31, 1999 were $15.0 million compared to
$28.2 million at December 31, 1998, a decrease of approximately $13.2 million.
 
    Cash provided by operations was $0.5 million in the first quarter of 1999.
This is comprised of $8.1 million of net earnings before depreciation and
amortization offset by a $6.8 million increase in accounts receivable, primarily
from new facilities in development and operation, and a $0.8 million increase in
other working capital items.
 
    Cash used in investing activities was $19.9 million in the first three
months of 1999 compared to a use of $22.3 million for the same period in 1998.
The use of cash was due to $5.8 million used to complete the SeniorCare
acquisition (see Note 4 of Notes to the Consolidated Financial Statements), $9.0
million used for prepaid rent for seven facilities, $2.7 million in additions to
property and equipment, $2.0 million used for the development and management
rights to a senior community, $1.0 million used for the purchase of two parcels
of lands, and $2.4 million used for purchase deposits on four parcels of land.
The Company
 
                                       10
<PAGE>
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
 
          OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
 
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
received $5.1 million from the return of cash held in a cash collateral account
(see Note 2 of Notes to the Consolidated Financial Statements).
 
    Cash flows provided by financing activities were $6.2 million in the first
three months of 1999 compared to $2.4 million for the same period in 1998. The
increase is due primarily to the net proceeds from the mortgage refinancing (see
Note 5 of Notes to Consolidated Financial Statements) partially offset by $1.5
million used to repurchase the Company's common shares on the open market (see
Note 7 of Notes to Consolidated Financial Statements) and $1.3 million of debt
repayments, which includes $0.8 million related to assets held for sale (see
Note 5 of Notes to Consoldiated Financial Statements in the Company's Annual
Report on Form 10-K for the year ended December 31, 1998).
 
    The Company will require resources in the future to fund the planned
acquisition and development of additional assisted living, independent and
supportive independent and extended care facilities as well as its working
capital requirements and common stock repurchases. The Company expects to
partially fund these resource requirements with its cash on hand, borrowings
under its $35.0 million line of credit (of which $14.1 million was unused at
March 31,1999) as well as related party or third-party financing of facilities
under development or to be developed. Furthermore, the Company intends to seek
bank borrowings and other debt or equity financings to provide additional
sources of capital in the future. The Company is in the process of refinancing
some of the debt assumed in the SeniorCare acquisition and expects to raise
approximately $20.0 million through these refinancings.
 
YEAR 2000
 
    The Year 2000 problem concerns the inability of information systems to
recognize properly and process date-sensitive information beyond December 31,
1999. In July 1998, the Company initiated a formal program to identify and
resolve Year 2000 issues. The scope of the program includes the investigation of
all Company functions and services, including embedded systems in what are not
traditionally considered information technology systems.
 
    The Company has identified its resident billing and general ledger as
internal systems that present a high level of risk from a Year 2000 perspective.
The Company has also identified several key external systems that could pose a
significant risk to the Company: those of various governmental agencies,
particularly Medicare and Medicaid, its payroll provider, and its investment
management companies and other financial intermediaries. The Company has also
acquired several facilities and/or utilizes third-party management companies to
provide financial information. These acquired systems must also be brought into
the Company's program.
 
    The Company has completed the planning and awareness and systems inventory
phases of the program. The assessment phase is scheduled to be completed in the
second quarter of fiscal 1999, with the correction phase being completed by the
third quarter of the same year. In April 1999, the Company completed the upgrade
of its general ledger system so that it is now Year 2000 compliant. The Company
is beginning the process of assessing the risk of supplier readiness, and in
selected cases will review the preparedness of individual suppliers for the Year
2000 problem.
 
    The Company currently estimates the cost of the Year 2000 program will
approximate $200,000, with a range of plus or minus twenty-five percent. The
Company's corporate personnel who directly oversee functions at the facility
level will also assist in the Year 2000 program as part of their regular duties.
This is expected to help reduce Year 2000 costs. All costs, except long-lived
assets, are expensed as incurred.
 
                                       11
<PAGE>
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
 
          OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
 
YEAR 2000 (CONTINUED)
These costs include the costs of outside consultants, systems replacements, and
other equipment requirements. The costs incurred to date are not material.
 
    Ultimately, the potential impact of the Year 2000 issue will depend not only
on the corrective measures the Company undertakes, but also on the way in which
the Year 2000 issue is addressed by governmental agencies, businesses and other
entities whose financial condition or operational capability is important to the
Company. Communications with significant third parties will be initiated to
determine the extent of risk created by those third parties' failure to
remediate their own Year 2000 issues; however, it is not possible, at present,
to determine the financial effect if their remediation efforts are not completed
in a timely manner. While the Company expects to resolve all Year 2000 risks
without a material adverse impact on its results of operations and financial
position, there can be no assurance as to the ultimate success of the program.
Uncertainties exist as to the Company's ability to detect all Year 2000 problems
as well as its ability to achieve successful and timely resolution of all Year
2000 issues. A "reasonably likely worst case" scenario of Year 2000 risks for
the Company could include the inability to receive reimbursement from Medicare
and Medicaid, and problems involving the inability of the Company's financial
intermediaries to accurately reflect the Company's cash position. The
consequences of these issues may include lost revenue and lower cash receipts.
The Company is unable to quantify the potential effect of these items on its
results of operations, liquidity, and financial position should some or a
combination of these events occur.
 
    In addition, because the Company's day-to-day operations are heavily
dependent on its ability to communicate information throughout its network of
facilities, the Company would be particularly susceptible to any possible
effects that the Year 2000 issue has on local and national communications
systems, including without limitation, telephone and data lines, because of the
difficulty in implementing viable contingency plans. Any interruption or
malfunction of such systems could have a material adverse effect on the Company.
 
    As the correction phase of the program is completed in mid-1999, the Company
expects to have developed contingency plans, which would augment existing
contingency plans, for the then current risks.
 
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
    The Company is subject to market risk from exposure to changes in interest
rates based on its financing, investing and cash management activities. The
Company does not expect changes in interest rates to have a material effect on
income or cash flows for the year ended December 31, 1999, although there can be
no assurances that interest rates will not significantly change.
 
                                       12
<PAGE>
                           PART II--OTHER INFORMATION
 
ITEM 1.  LEGAL PROCEEDINGS
 
    The Company is a party to litigation in the ordinary course of business. The
Company does not believe that any such litigation will have a material adverse
effect on its business, financial position or results of operations.
 
ITEM 2.  CHANGES IN SECURITIES
 
    None.
 
ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
 
    None.
 
ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 
    None.
 
ITEM 5.  OTHER INFORMATION
 
    None.
 
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
 
<TABLE>
<C>          <S>
      (a).   The following exhibits are filed as part of this report:
 
       3.01  Corrected Third Restated Certificate of Incorporation of CareMatrix
             Corporation(2)
 
       3.02  By-laws of CareMatrix Corporation, as amended through December 9, 1996(1)
 
      10.00  Amendment to management agreement dated as of January 1, 1999 between Cambridge
             House Associates General Partnership and CareMatrix of Massachusetts ("CMM")(*)
 
      10.01  Amendment to management agreement dated as of January 1, 1999 between CCC of New
             Jersey, Inc. and CMM (Park Ridge/AL)(*)
 
      10.02  Amended and restated management agreement dated March 1, 1999 between CCC of New
             Jersey, Inc. and CMM (Park Ridge/SNF)(*)
 
       27    Financial Data Schedule(*)
 
      (b).   Reports on Form 8-K
 
             None.
</TABLE>
 
------------------------
 
(*) Filed herewith.
 
(1) Filed as an Exhibit to the Company's Annual Report on Form 10-K for the year
    ended December 31, 1996.
 
(2) Filed as an Exhibit to the Company's Annual Report on Form 10-K for the year
    ended December 31, 1997.
 
                                       13
<PAGE>
                                   SIGNATURES
 
    Pursuant to the requirements of Section 13 or Section 15(d) of the
Securities and Exchange Act of 1934, as amended, the Registrant has duly caused
this Report to be signed on its behalf by the undersigned, thereunto duly
authorized.
 
<TABLE>
<S>                             <C>  <C>
                                CAREMATRIX CORPORATION
 
                                By:            /s/ ABRAHAM D. GOSMAN
                                     -----------------------------------------
                                                 Abraham D. Gosman
                                              CHIEF EXECUTIVE OFFICER
 
                                By:            /s/ MICHAEL J. ZACCARO
                                     -----------------------------------------
                                                 Michael J. Zaccaro
                                            CHIEF OPERATING OFFICER AND
                                              CHIEF ACCOUNTING OFFICER
</TABLE>
 
Dated: May 14, 1999
 
                                       14